Former Bank Employee Jailed for Mortgage Fraud and ID Theft

Allison Tussey —  April 7, 2014 — 1 Comment

Jill Dail, 59, Cambridge, Maryland, was sentenced by U.S. District Judge J. Frederick Motz to 16 months in prison, followed by five years of supervised release, for bank fraud in connection with a scheme in which she and her brother, Jeffrey Scott Dail, fraudulently obtained mortgage loans in the names of family members, using the proceeds for their own benefit.

Judge Motz sentenced Jeffrey Dail, 49, also of Cambridge, to a year and a day in prison, followed by three years of supervised release, for his role in the scheme. Judge Motz ordered ordered Jeffrey Dail to pay restitution of $248,000. The amount of restitution for Jill Dail will be determined at a later date.

According to her plea agreement, Jill Dail was a loan settlement processor in the mortgage department at a Salisbury, Maryland, bank until she was terminated in June 2007, as part of a reduction in the bank’s workforce. Shortly thereafter, Dail was privately hired by the manager of the bank’s mortgage department to continue to do the same loan processing work she had performed as an employee of the bank. The bank manager paid Dail out of his own funds and gave her full access to the bank premises, computer system and loan files. Dail continued to represent herself as a bank employee in her dealings with title companies and other businesses.

Jill Dail admits that beginning before January 2006 through at least August 2009, she and her brother, Jeffrey Dail, applied for mortgage loans in the names of family members and used the proceeds of the loans for their personal benefit. The Dails forged the signature of family members and bank officials on the loan applications, causing the bank to approve the applications and authorize the distribution of the loan proceeds at settlement. In each instance, the family members whose identities were used on the loan applications, and whose properties were used as collateral for the loans, had no knowledge of the applications or the loans

Based on the assurances of Jill Dail, with whom the title company had a well-established business relationship, title company employees notarized the signatures of the family members on the settlement documents and disbursed the loan funds at settlement, as directed by Jill Dail, to herself, to Jeffrey Dail, or to their creditors. The balance of loan funds still unpaid is approximately $687,923.67.

The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who prosecuted the case.

 

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Allison Tussey

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One response to Former Bank Employee Jailed for Mortgage Fraud and ID Theft

  1. Michelle Khan April 8, 2014 at 2:37 pm

    Truly disturbing to read this and eye opening! One of the most trusted positions we consumers place in high regard is the lending institutions. We feel our information is safe. Each time someone betrays that trust, it only makes it harder on our economy as a whole. Thank you for a great post!

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